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Home / Simons-Taxes /Personal and employment tax /Part E4 Employment income /Division E4.10 Provision of services through an intermediary (IR35) /Accounting for the deemed employment payment and distributions / E4.1021 Deductibility of the deemed employment payment
Commentary

E4.1021 Deductibility of the deemed employment payment

Personal and employment tax

When computing the profits of a business carried on by an intermediary assessable as trading income, an intermediary treated as making a deemed employment payment may deduct both the amount of that deemed payment and the amount of any employer's NIC paid in relation to it. The deduction must be made in the period of account in which the deemed payment is treated as made. No deduction may be made for the 5% flat-rate deduction available (E4.1012) in computing the amount of the deemed payment1. However it is

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